China stocks fall amid credit concerns

08:29, April 27, 2010      

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China's shares fell further Monday amid lingering concern Beijing might tighten credit to cool bubbling housing prices while technology stocks rose on rumors of possible steps to stimulate the industry.

The benchmark Shanghai Composite Index fell 0.5 percent to close at 2,969.50. The Shenzhen Composite Index for China's smaller second market lost 0.6 percent to 1,197.72.

"Shares in the `new economy' outperformed blue chips today on rumors that the government is going to issue a number of stimulating plans for `new economy' industries," said Wen Lijun, a strategist for Nanjing Securities.

Real estate shares continued a slide triggered by the announcement this month that the Central Government will take steps to cool housing prices. The government has yet to announce more details, and investors worry they will reduce market liquidity.

The country's biggest developer, China Vanke Ltd., lost 1.6 percent to 7.80 yuan.

Banks also fell. Industrial & Commercial Bank of China Ltd., the country's biggest commercial lender, lost 0.44 percent to 4.53 yuan. Construction Bank of China Ltd. shed 0.58 percent to 5.14 yuan.

Metals suppliers slid on lower commodity prices. Aluminum Corp. of China Ltd., or Chinalco, lost 0.49 percent to 12.17 yuan. Jiangxi Copper Ltd. lost 0.54 percent to 35.11 yuan.

Among technology issues, cable TV operator Beijing Gehua CATV Network Co. soared by the daily 10 percent maximum to 17.53 yuan.

In currency markets, China's yuan strengthened to 6.8267 to the U.S. dollar, up from Friday's 6.8285.

By People's Daily Online


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